If you work in a job where wages are typically low, such as in the retail or service industry, then it is essential that you understand the minimum wage and your rights to payment as an employee.

Here CashLady looks in more detail at the minimum wage, including the types of employment that it covers and what to do if you suspect that you are being paid less than you should be.

What is the National Minimum Wage?

Introduced in 1999, the National Minimum Wage was brought in to protect UK workers at the bottom end of the pay scale.

It stipulates how much money a worker should be paid per hour, depending on their age and whether they’re an apprentice.

The National Minimum Wage vs The National Living Wage

The National Minimum Wage is for workers who are at least school leaving age (last Friday in June of the school year they turn 16,) up to the age of 25.

Those who are over 25 are eligible for the National Living Wage, which pays a little more.

Minimum wage rates 2017/2018

Rates for the National Minimum Wage and National Living Wage are set on April 1 every year. The current rates, depending on your age and whether you are an apprentice, are:

25 & over 21 to 24 18 to 20 Under 18 Apprentice

£7.50 £7.05 £5.60 £4.05 £3.50

Your employer and the minimum wage

Regardless of the size, your employer, failing to pay the minimum wage is a criminal offence.

The rates change every year in April, and so you should keep up to date with the current rates and check your payslip to ensure that you are being paid the correct hourly wage.

If you aren’t sure how much you earn per hour then use the salary/hourly rate calculator on the Government website here.

Employers that don’t pay the minimum wage

HM Revenue and Customs (HMRC) officers have the power to spot check your employer at any time, plus they may carry out an investigation if they receive a specific complaint from an employee about their employer, concerning the minimum wage.

If HMRC finds that an employer hasn’t been paying the correct rates, any arrears must be paid back immediately. Employers will also be fined and offenders may be publicly named by the government.

What jobs and workers are covered by the minimum wage?

The minimum wage doesn’t just apply to permanent workers in full-time employment. You are eligible if your work covers any of the below:

part-time

casual labourers, for example, someone hired for one day

agency workers

workers and homeworkers paid by the number of items they make

apprentices

trainees, workers on probation

disabled workers

agricultural workers

foreign workers

seafarers

offshore workers

Which workers are not covered by the minimum wage?

The following types of workers aren’t entitled to the National Minimum Wage or National Living Wage:

workers on a government employment programme, such as the Work Programme

members of the armed forces

family members of the employer living in the employer’s home

non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and aren’t charged for meals or accommodation, for example, au pairs

workers younger than school leaving age (usually 16)

higher and further education students on a work placement up to 1 year

workers on government pre-apprenticeships schemes

people working on a Jobcentre Plus Work trial for 6 weeks

share fishermen

prisoners

people living and working in a religious community

work experience and internships

What to do if you think are you being paid below the minimum wage

If you believe that you are entitled to the minimum wage but aren’t receiving it, then there is lots of help and support available to you.

First, read the minimum wage guidelines on the Government website and then speak to your manager at work and explain why you think you have been underpaid.

If you have been underpaid then they are required by law to provide you with the correct back pay.

For further advice, contact Acas (Advisory, Conciliation and Arbitration Service,) who provide free and impartial information to employers and employees on all aspects of workplace relations and employment law.

Contact

Information

Social Media

CashLady.com is a credit brokerage website owned and operated by Money Gap Limited. We are not a lender and do not provide credit to consumers. If you make an application through this site it will be shown to a selection of UK based lending partners for careful consideration. Applicants must be 18 years or over and approval is subject to status. We will never charge a fee for our service, but do receive a commission from lenders following successful introductions originating from this website. Any information we provide is for the strict purpose of illustrating the lending process only and does not constitute any form or financial or legal advice.